Can arbitration for Kitchen Solvers disputes proceed as a class action?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.2.2 Any arbitration must be on an individual basis and the parties and the arbitrator will have no authority or power to proceed with any claim as a class action, associational claim, or otherwise to join or consolidate any claim with any other claim or any other proceeding involving third parties.
In the event a court determines that this limitation on joinder of or class action certification of claims is unenforceable, then this entire commitment to arbitrate shall become null and void and the parties shall submit all claims to the jurisdiction of the courts.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, arbitration must be conducted on an individual basis, and neither the parties nor the arbitrator have the authority to proceed with any claim as a class action. This means that franchisees are prohibited from consolidating their claims with other franchisees or pursuing claims as a group against Kitchen Solvers in arbitration.
If a court determines that the waiver of class action claims is unenforceable, the agreement to arbitrate becomes null and void, and all claims must be submitted to the jurisdiction of the courts. This provision ensures that Kitchen Solvers and its franchisees will resolve disputes individually through arbitration, unless the class action waiver is deemed unenforceable, in which case litigation may occur in the courts.
This clause is generally included to prevent Kitchen Solvers from facing large, consolidated arbitration claims, which can be more costly and complex than individual arbitrations. However, the inclusion of this clause may not be permissible in every state. For example, the addendum to the franchise agreement for the state of Minnesota notes that nothing in the franchise agreement can reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.